608 Current Event Discussion Module 6:
Need to read and question/comment on the below
Hello All- I found a topic that seems timely, with us discussing revenue comparisons, and the drivers that affect shifts, rises, and drops in revenues by segment this week.
My article takes a slightly different approach, as rather than shifts in the day of the week, it highlights shifts in demand by line of business based on new market competition.
The article I am sharing with you this week is on New Jersey’s massive revenue growth, and of note, its composition as online gaming continues to penetrate the marketplace. It can be found here:
https://ocnjdaily.com/new-jerseys-soaring-casino-revenue-comprehensive-overview/
New Jersey has been home to legal casino gambling since 1976. New Jersey was also one of the early adopters of sports betting, enabling it in 2018 following the repeal of the Professional and Amateur Sports Protection Act PASPA. Additionally, many don’t realize that New Jersey legalized online casino gambling and poker in 2013, 11 years ago (American Press Staff, 2023). As a result, New Jersey has seen their total gross gaming revenues skyrocket.
It is expected that 2024, will be the first time New Jersey records $2 billion in internet casino revenues. This is particularly staggering, as in 2019, i-Gaming accounted for just $483 million (Deke, 2024). Though the pandemic certainly played a part in this shift, it is a welcome turn of events for the state’s coffers and a case study on what online gaming might do in other markets. Analysts are now speculating over when i-Gaming revenues will overtake their land-based counterparts.
It isn’t all clear skies for these operators, however, with conversations around raising gaming taxes making the rounds. With a commercial gaming licensure process underway to the north in New York City, and the threat of i-Gaming being approved in New York, conditions could change quickly with New Jersey being left to feel like the rug has been pulled from under them.
What insights do you all see in these shifts? What do you make of what has occurred in New Jersey due to this new market entrant in the form of online gaming? Do you think they took the right approach? What would you do differently (if anything)?
References
American Press Staff. (2023, October 18). The history of gambling in New Jersey – American Press. American Press. https://www.americanpress.com/2023/10/17/the-histo…
Chrisbates. (2024, February 23). New Jersey’s soaring casino revenue: A comprehensive overview | OCNJ Daily. OCNJ Daily. https://ocnjdaily.com/new-jerseys-soaring-casino-r…
Deke. (2024, April 20). Analyst: Igaming to overtake Atlantic City, but when? CDC Gaming Reports. https://cdcgaming.com/analyst-igaming-to-overtake-…